Boralex Inc. (Friday’s close $28.35) traded above its rising 40-week Moving Average (40wMA) and above a rising trend-line from late 2016 to the end of 2017 (dashed line). It fell below these indicators and below a falling trend-line in early-2018 (A - dotted line).
The stock started to rise again in 2019, above its average and above the falling trend-line, to signal the start of a new up-trend (solid line), but became extremely overbought as it rose far above its average (B). It pulled back toward the rising trend-line and its rising 40wMA (C) and, except for a two-day dip as the markets experienced a “panic selling,” it found support near ±$22. Boralex now appears ready to resume the up-trend (D). A sustained decline below $25-$26 would be negative.
Point & Figure measurements provide targets of $33 and $35. Higher targets are visible.
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Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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